no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners. i'm jim cramer and welcome to my world. you need to get in the game. firms are going to go out of business, and he is nuts! they're nuts. they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. my job is not just to entertain, but i'm trying to coach you and teach you. so call me at 1-800-743-cnbc. after today's sweet action, dow gaining 54 points, s&p advancing 0.40, nasdaq jumping .89%, on top of yesterday's incredible
ben bernanke-induced run -- >> hallelujah! >> -- i'm sure many of you are wondering where do we go from here. you know what? i like to take things one day at a time. and that's what i'm doing for the game plan for next week. we are in the heart of conference season. and that means while there aren't a lot of earnings reports, you still need to do a heck of a lot of listening. and i've got some trigger pulls. but let's just talk about the conferences. because if you haven't been an institutional trainer or a portfolio manager, you won't understand this. i'm going to explain it. conferences matter tremendously. consider the big surge in the bank stocks we had this week. that had a lot to do with positive commentary out of major banks that came to new york and spoke, particularly bank of america, which overnight has turned from laggard to leader. if the lawsuits are factored in and housing is indeed coming back, as i believe it, then bank of america's stock is not done. on jim cramer@twitter, i was
asked this a million time today. it's not done. i'm gun shy about shelling you to just buy it. it has disappointed so many times, but the winds are now at bac's back, and that can carry a stock a heck of a lot further than you might think. how do i play conferences? some i actually like to buy ahead of. so take crn, salesforce.com's dreamforce conference, where ceo mark benioff, a regular on "mad money" holds court in front of an astounding 80,000 customers, fans, and acolytes. the conference, which starts on tuesday, can definitely move the stock. so what would i do? all right, well you've got to think about this for monday's action. crn. and here is how we're going the play it. because you have asked about option strategies for a long time. and i'm giving them to you. monday i would go by what is known as deep in the money call options on salesforce. the contract i looked at is the november 140 calls. they look superb.
they're trading at about 2,223 with the stock at 159. you can bet on levitation as the hoopla of the cloud takes over. why that contract? first, because it gives you several months to let the story play out if dreamforce doesn't pop crn. that matters because we're now in the seasonably strongest period of the season for tech. this lets you play a high volatility tech stock right through to the third week of november. second, salesforce reports the day of that options expiration. and you sure as heck want to call on the upside of that one. remember the last few times it has been gigantic. this is an ideal ticket for an ideal stock for the ideal moment, and you got to pull it ahead of dreamforce. do not pull the trigger the next day. it's too late. next we have a traditional analyst day on tuesday that i think is worth speculating ahead of, asc enterprise, the holding company for popeye's. not that long ago we had the ceo of asc on the show.
i think the company has a dynamite story with consistent growth and an upgrade of stores that is working for them. plus we have the regional and national things going, and they have a good international footprint they're going to build out. this is a couple points off its high, but it delivered a fabulous quarter the last time it reported. i got to tell you, i think the story is going to pop when it's told on tuesday because many in new york still aren't familiar with afc. and i'll bet they like what they hear. >> wouldn't anything for a trade that is not worth investing, in and this one is a keeper, even if the meeting doesn't produce a tradeable bounce. we also got two earnings reports on tuesday that i care tremendously about. you should do. fed ex, fdx and manchester united. remember the preannouncement had a terrible quarter not that long ago. but the stock is up nicely from the preannouncement courtesy of european solidarity. i fear that fed ex will reiterate, plus oil went up since they even talked.
i would buy this one on weakness, because it has lagged in its transport. it's too high quality for that discount the last. on the flip side, all right, guys, you really got to focus on this, because this i think just an ongoing train wreck. we're going get the first quarterly report from the newly minted manchester united, britain's most popular soccer team. i've already put this flop of a deal in the sell block -- >> sell, sell, sell. >> i don't think it's too late to -- >> sell, sell, sell. >> mau because it's wildly over valued. way too many variables that must go right and ownership that is stacked against you. two conferences start wednesday, the deutsche bank energy conference, i always love that one. and the ubs global life science meeting. talk about a place to learn. sure, we want to hear from individual companies. but i'm going to let you in on something. i'm going to let you in on a trick that karen cramer taught me some 25 years ago when she was running the trading desk of
cramer company, my old hedge fund. you go to a conference to find out if the big guys, the big money guys are interested in the stocks. you got to see how many bodies are in a room to determine whether there is going to be a lot of potential buyers. do you know that sometimes she would send general wine factotums to count the number of people at meetings in conferences just to see if anyone really cared. using that same logic, stephanie who linked actionalerts.com who works with me at the street and was on maria bartiromo's show this afternoon, she got the most compact rundown. believe it or not, it was the truck manufacturers and the part makers who stole the show. they're still way behind the market. for the record, i like eaton, which only has 11% truck parts but still trades to the group. i have to tell you, if you want to look at a stock that went off at the conference, take a look at cummins. they love the trucking group and they bought cummins. on wednesday i want to see if it holds great interest for people. standing room only for schlumberger? that would make me think they're
going higher. is there positive natural gas chatter? global life science? biogen and celgene. but we have to gauge for more speculative names, including one you want to hear about i am going to give you on this show, and you don't want the miss it. two of our favorite retailers report wednesday, bed, bath & beyond and ascena. this is asna. it just bought charming shops. and i bet we find out that integration is performing extraordinarily. i see an upside surprise. that might move the stock up. it's just a little bit below its 52-week high. bed bath is a little trickier. the last quarter sent the stock plunging from 73 to 59. it was a disaster. if you want to play this one, you have to do it with co-options given how much you got hammered on the disappointment last night. the december 65 calls for roughly $6. if bed bath delivers, the stock could go back to its old high and if it doesn't it most likely will give up a lot of the hard-fought gain we had to 70
and you'll be stopped out. thursday oracle and tibco. both have performed fabulously of late. tibco you've heard lately on the show. it's been a winner. only recently in this more friendly environment have the stocks actually moved higher. i like both of them going into the quarter. finally, friday. darden, which made red lobster and olive garden famous. this is one of the oddest stories out there. the last quarter and the quarter before that were really nothing to write home about. but the stock has been a horse in large part because of its large dividend. i fear owning darden into the quarter, though, because it now only yields 3 7.% courtesy of recent events, and i don't think the company is going to be able to blow away numbers which it should given its rally. speaking of disappointing, wow. disappointing numbers that were ignored by the market all week at kb homes. kb homes almost stopped the housing recovery in its tracks last week. the company just reported hideous numbers.
they tend not to rebound all that quickly. i tend to be wary when kbh reports on friday, and you should be do, particularly if we have a continuation of the housing recovery. darden is a higher quality company, but i have to tell you, i don't think they can say much that could justify the amazing run that kbh has had. here is the bottom line. conference season full swing. you've got plenty of opportunities. but the most important thing is that you keep your eyes and ears open. because the most important opportunity is the chance to absorb all the information that is about to come your way. let's go to kim in ohio, please. kim? >> caller: hi, jim. a big buckeye boo-yah from the great state of ohio. >> right back at you. it's a swing state. we're all calling you the swing state now. >> caller: i know. we're hoping to head in the right direction this time. my question has to do with marathon oil, mro. >> yes. >> caller: with everything that is going on in middle east, where do you think the stock is going from here? >> i think mro is going higher. i think the stock is a terrific
company. it's just still coming back. it's still inexpensive. we should add that old yield before they split into phillips, phillips split into marathon refining. but i do like mro, and i would buy it right here. >> buy, buy, buy! >> let's go to mike. >> big boo-yah. >> i was going to give you a bear boo-yah, but i don't like the bears either, this kind -- or well, whatever. go ahead. >> caller: thanks. today's retail sales information is out, and fossil just went through the roof. >> wasn't that something? did you see that? >> caller: it was unbelievable. you know, it's been a little bit of a roller coaster ride. i'm just kind of curious to get your take on what is the fair value for the company. >> you know what? i think it's probably about right here. i saw it today. i did a piece for realmoney.com not that long ago. just about two hours before, and i got to tell you, i think this run is overextended. i called the fossil run today froth, and froth makes me want to --
>> sell, sell, sell! >> conferences are key. don't ignore them. they may not be sexy, but they can, indeed, make you money. stay with cramer! >> coming up, liquid asset? cheniere energy has nearly doubled in 2012 on its plans to become exporting america's abundance of natural gas. with demand rising around the globe, could its shares continue to heat things up, or will they come under pressure? cramer's exclusive with the ceo is next. and later, spectacular? cramer's found a brand-new single digit spec play. is there about to be a breakout in biotech? don't move. this one could deliver a healthy dose of profits. all coming up on "mad money." >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets.
send jim an e-mail at madmoney.cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ male announcer ] this is rudy. his morning starts with arthritis pain. and two pills. afternoon's overhaul starts with more pain. more pills. triple checking hydraulics. the evening brings more pain. so, back to more pills. almost done, when... hang on. stan's doctor recommended aleve. it can keep pain away all day with fewer pills than tylenol. this is rudy. who switched to aleve. and two pills for a day free of pain. ♪ and get the all day pain relief of aleve in liquid gels.
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for years i've been trying to get our leaders in washington to realize that natural gas is the fuel of the future. i figure that we have so much of the stuff and it's so incredibly cheap that anybody with even a half a brain will want to jump on the natural gas bandwagon. of course we're talking about washington. so half a brain was probably too much to hope for, which explains why we're still no closer to harnessing this amazing domestic energy source. that's fine. this isn't a show about public policy. it's about helping you try to make money. our politicians here in america may not value our natural gas, but believe me, just about every other country on earth is dying to get its hand on the stuff. that's because natural gas is much more expensive outside of north america. unlike oil, the market for nat gas is regional, not global. since it's very difficult to transport via pipeline. however, if you can come up with way to make it so that natural gas can be shipped across the ocean, you can make a fortune. which brings me to cheniere. in order to ship nat gas you got to cool it down until it turns into a more compact liquid form, but that requires lots of
expensive hardware. this is a huge product, but it's going to be incredibly lucrative when the export terminal comes online in a couple of years. cheniere just had a very bullish analyst day earlier this week where they said they were done raising equity. that's a big deal. they've done three since last september. this stock has already given you 105% gains since we first spoke with the ceo in june of last year, but i think it potentially has even more to run. let's check in with charif souki, the visionary co-founder, chairman, and ceo of cheniere energy, lng. find out more about what is happening and where his company is headed. mr. souki, welcome back to "mad money." how are you? >> good to see you again, thank you. >> so run through the presentation, and it's pretty clear that at this point, you don't need my more money. you've got this project done. >> we do. we don't need any more money. the project is done. >> and this is a multibillion --
and you raised it all from major companies? >> yes, we did. it's a very attractive project, and i think it was just a question of being patient and the money came in. >> now one of the things that somebody asked me to ask you, because you're a fascinating figure to many of our viewers because you've made us money. a very smart guy said you've got to be the most tied in man around the globe. just list all the companies that are in on your deals. >> let's start with total and chevron as the first two customers, gas de france to a lesser extent, and then since then bg on the liquefaction side, which was our first big customer. >> right. >> gas natural from three different areas in the world. on the financing side, tomasik and another group from singapore.
>> and that is just you. you just know all these people. i tell you, i'm fascinated. i believed in you. a lot of people were skeptical. and i just thought you did have these contacts. but you have literally named every major national gas, natural gas company around the globe, and every national natural gas company. >> jim, i didn't know all these people when we started, but if you have a good project, this is a wonderful thing about america. if you have a good project, you believe in it and you're willing to be patient and go and tell people your story, they will listen. >> they really will. >> they will listen. >> lately a lot of the natural gas companies i've been talking are saying listen we have such a glut, we're not going to drill anymore. it possible that you and i have overestimated the amount of natural gas that can be available, and in the end you won't make those big spreads? >> fascinating thing happened in the last six months. we have increased our oil production by half a million barrels a day.
in other words, we are now increasing oil production in this country on average by a million barrels a day every year. until this changes, we still don't know where it's going. now with oil comes gas. but it's gas. >> we are burning off what most companies are paying $16 for? >> yes. >> just in the ether? >> we don't have anything to do with it. just in the eagle ford in south texas, our numbers show if we want to use the oil, by 2020, we're going to be producing 80 to 90 of gas and we have no idea what to do with it. >> and you have come up with a plan. it sounds like you started. it sounds like if i go down there i'm going to see tons of people that you've put into work. >> the dozers are working. we're moving ground, and bechtel has started the construction. we put in our orders for the refrigerators and all the equipment. so the project is on. >> now you've got news out of
japan this week that is going in your direction. japan is closing its nukes. they have to import, right? >> they're going to have to look at something. they cannot close their nukes is and not have an alternative. in fact, i'm flying to tokyo on sunday. >> so what is it, tokyo, who is it this time you're going to do a $2 billion deal with? >> no, i'm just going to go tell them a story. >> hello, a lot of ceos come in that i'm kind of in awe of, but i play with an open hand because a lot of people are skeptical, as i said up top. now, can you give me the way that you're talking about paying a dividend for lng, for the stock lng, which is the one we have been recommending in the master limited partnership. but you're talking about a bit of a change in capital structure because lgn has so much money. >> what's going to happen, first, it's not open. well industrial to do the second phase so, we're going to raise another $5 billion.
it will be done at the level. >> the partnership level. >> not on top, at the bottom. >> right. >> and it's going to be a combination of mostly debt and a little bit of equity because now it's our second phase, so we have a much bigger platform to start from. and that i think the market is very receptive now. we had a very good reception in the bond markets. >> right. >> and in the bank market for the first phase. and this we'll do in the next six to nine months and be completed by the middle of next year. >> and when are those ships going to be leaving with the stuff? >> the first ship will leave some time in 2015. so we're getting pretty close. >> i got to congratulate you. you pulled it off. you really did. >> yeah, it's not over. >> but you're much further. and i congratulate you and the shareholders with you because you've paid them a lot of money. thank you so much. that's charif souki, chairman and ceo of cheniere energy. the humility. he got it. but you didn't. congratulations. >> thank you.
>> stay with cramer. coming up, spectacular? cramer's found a brand-new single digit spec play. is there about to be a breakout in biotech? don't move. this one could deliver a healthy dose of profits. [ male announcer ] the 2013 smart comes with 8 airbags, a crash management system and the world's only tridion safety cell
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we're always looking for smart ways to speculate here on madonna. and tonight i have got what i believe could be a terrific biotech spec for you. caveat, do some homework before you even listen to this one. it's a tiny little $4 stock. so that's big caveat, because i don't want anything to go wrong here, you know what i mean? okay, what is this four dollar and change stock? it's called dynavax, dvax. you do your homework, pull the trigger, bad. let me put more caveats up-front. speculation is always risky, especially when you're playing with small dollar amount stocks like dynavax is. it's possible dynavax could blow up in our faces so it's not for the faint of heart. it is developing a game-changing vaccine for hepatitis b, and that is a nasty infection that is transmitted through the blood, a disease that affects
roughly 350 million people worldwide on a chronic life-long basis and can lead to everything from cirrhosis to liver failure. it is working on a vaccine that can blow all of its competitors out of the water. small cap stock, do the homework, get comfortable. when we do these $4 stocks, they can go to $2. they can go to $2. if the fda approves the hep-b vaccine, i think the stock could double, yes, double by the end of the year. it could be at half or double. now you know the risk reward. if you can handle the risk, i think it would be worth taking the weekend to do some homework and put in some limit orders to pick up some dinah vaccine at a decent price before it gets away from you. that said, the thing shoots through the roof on monday, do not chase it there is no data
points for at least another six weeks. i told you this early. chasing is how you lose money. you either wait for the stock to come back down or take a pass. don't pay up for something that can fail spectacularly if the fda decides to give it a thumbs-down, that's when it goes to 2 or up. the fda could squash it like a bug. it is the kind of stock we like to speculate on "mad money." this is not an investment. this is a speculation, okay. put it in the category of heckmann, some of you got mad at. didn't understand it was speculation in oil. first, company's hep-b vaccine has already posted incredible trial results. it uses a students that you add to the vaccine which increases the body's immune response making it much more effective. if dynavax were the first to try this approach with the fda, i don't know if i would be willing to try this, because the fda is very trough on trailblazers. however, the fda has already
approved a cervical cancer vaccine. that means we have precedent that the fda is willing to approve vaccines like the one dynavax is developing. it makes me much more willing to take a chance. yes, let's call it a flier on this one. now the fda panel meets in november. that's why i say you have plenty of time to do your homework, and why if it goes up on monday, tuesday, wednesday, just wait. because they don't wait until november to consider the hep-b vaccine. based on the data, i think they're going to have a hard time being anything other than positive. we saw that 95% of patients who got two shots achieved protective antibody levels versus 89% of. so two shots works better than the three shots of the competition. but of course since they already have something like three shots, they may be reluctant to do something like two shots. they may say hey listen we already have something for that. that happens.
studies show that dynavax works better in older populations. that's why it labeled for adults between the ages of 18 and 40 to 18 to 70. much wider range. originally the fda restricted the label to younger patients because of worries about safety, but obviously they aren't worried anymore if they're reversing that decision. to me, this is the big tell that the fda is very likely to approve the drug on the first go-round. if the fda does approve the vaccine, what would it mean? okay, this is an $800 million company. the total hepatitis b vaccine is probably 1.8 million. it can go up a lot larger. given the effectiveness of the drug, it should be able to do 700 million in sales by 2016. that's a low-ball figure if you ask me, but i'm trying to be conservative. look, it beat the stuffings out that currently does more than $800 million in sales which is how i arrived at the figure. but even if it only turns out to
be $700 million a year vaccine, that's pretty good. they could partner up with a big partner for the right to sell internationally. originally they were partnered with merck, but when they ran into trouble with the fda over safety concerns which is why the stock sat 4 bucks, merck gave up on the project and let dynavax all to themselves. they paid double-digit royalties. but because merck dropped out, times got tough. now they have trial results showing how well the vaccine works, they can easily sign a much more beneficial partner deal and the stock will pop. and that's just for hepatitis b. dynavax also has a hepatitis b vaccine that will be used for elderly diabetics who often get the disease when testing their glucose levels. this could be a huge market. given the obesity epidemic we're seeing in the country, possibly $2 to $3 billion over the next 10 to 15 years. if everything goes well, and again, that's a major assumption, i could see the stock going from $8 to $10, call
it $9 at the mid point. the bottom line, i don't like to play the fda roulette wheel usually. but i think the case for dynavax's hepatitis b vaccine is too good to ignore and the odds that the fda will hand down a positive in november, that's why it's risky. i like to think for speculation dbax is exactly the kind of stock i like to think of for speculation friday. the partly cooling off period, study over the weekend. if the stock opens up on monday or tuesday, you're not going to buy it. brian in maryland. brian? >> caller: boo-yah, jim. >> boo-yah, brian. >> caller: my question is a follow-up on 3d systems, stock symbol ddd. they had a 15% decline. i'm wondering if you think it's a good entry point to get back into this as a spec play, and what you think of the 3-d dodge sector in general.
>> i'm not crazy about it because the multiple is so, so high here. i mean versus -- you know, the pay grade, you know how i make it if a stock is very expensive versus growth rate, i don't touch it. i'm going to have to put that in the don't touch block. let's go to doug in nebraska. doug? >> caller: hey, a courthouse ba-ba-ba-boo-yah mr. cramer. >> i'm coming right back. i haven't had a nebraska call in ages boo-yah. >> caller: hey, listen. i got to give a shout out to my 88-year-old world war ii veteran father and 85-year-old wonderful mother. >> well, you are a lucky man. and i join you in that shout out. [ applause ] >> caller: great. mr. cramer. >> yeah? >> caller: thank you. all right. i've got a stock called 8x8, call letters aght. >> right. >> caller: what do you think
we're looking at with this cloud stuff? >> well, it is a derivative cloud play. people love it. i think you own it through salesforce.com. sir, this is a very speculative stock. if you go over a multi-year chart of this stock, you will see a tremendous level of disappointment. and i don't want to -- and then coupled with just a very big run in the last year. be aware that i don't think the disappointment is necessarily behind it. but if they want to come on the show-and-tell us why, i'm too bearish. i welcome them. let's go to david in florida, please. david? >> caller: good evening, sir. thank you for taking my call. >> sure. >> caller: i have a question about orasure. i need your advice. >> i think orasure is kind of an interesting stock. i have talked to the company. i like them very much. you know, i have mentioned them several times, and i really like diagnostics. but i like to hear from the company on the show before i say
pull the trigger. all right. if is speck lace friday -- it is speculation friday. you know we like to put up a spec on friday. you know specs can be cut in half or double. dvax, i think it could get cut in half or it could double, depending upon what the fda says. go do your homework. and stay with cramer. we're sifting through your e-mails and tweets @jimcramer#tweets. stick around. your question might be answered on the air.
it is time, it is time for the "lightning round"! on cramer's "mad money," you say the name, i say buy, buy, buy, sell, sell, sell. and then it's over. [ buzzer ] >> are you, skee-daddy? it's time for the "lightning round" on cramer's "mad money." i want to start with francis in massachusetts, francis? >> caller: boo-yah, jim cramer. >> wow. boo-yah back. >> caller: i need your opinion on smith & wesson. >> that was a blowout quarter
and i should have been pushing it. everyone was right who egged me on it ever. i chose to go through cabela's. but cabela's did hit a 52-week high, so maybe i'm not a complete bozo. let's go to florida. >> caller: hi. jim, i have a two-part question. two weeks ago i asked you about -- you said you had to do further analysis on it. i'd like to know when that is forthcoming, and what is your take on polycom, plc? >> it's way too hard. >> sell, sell, sell! >> let's go to robert in new york. robert? >> how's it going in a big new york state long island region something boo-yah. >> i'm liking that. i'm liking that a lot. what is going on? >> caller: rub your crystal ball about nationstar mortgage. >> that is a really good company. i remember i was saying look at this, the old national semiconductor, nsm reinvented
and bingo, it's been a win. i like it a lot. let's go to ron in michigan. ron? >> caller: dr. cramer, big boo-yah from wayne state school of business. >> well, thank you for calling. thank you for going to school and focusing on our show at the same time. what is going on? >> caller: bks, barnes & noble. >> ouch! ouchie ouch, like my daughter used to say. >> sell, sell, sell. >> i don't like the book business. why? because of amazon. let's go to elbert in arkansas. elbert? >> caller: hey, jim. >> hey, razorback, what's up? >> caller: from jonesboro, arkansas, the home of the arkansas state university. >> congratulations, man! fabulous win. >> caller: i bought a stock last week called rentech nitrogen. it seems to be going up. >> i think you made the right move. i want you to stick with it. that's a good call. i need to go to winston in connecticut. winston? >> caller: boo-yah, big jim,
from mystic. >> love it! we were there the other day. beautiful. go ahead. >> caller: thanks for your book, "getting back to even." >> quite welcome. >> caller: news corp. >> oh, the split-up is so good, it is going to go to 27, 28. i like it. >> buy, buy, buy! >> i tried to wait before the stock came back down before i pushed it on the show, but it never came. in greg in new jersey, greg? >> caller: scarlet knights football boo-yah, jim. >> holy cow. took it to aa boo-yah. my daughter was there. what's up? >> caller: i was there too as a matter of fact. priceline. >> i think they have a unique model. i don't want to give up. i want to stay in priceline. one more. let's go to deb in arizona. deb? >> caller: hey, cramer, this is deb. and thank you from all of your fans out here in arizona. >> you're welcome.
>> caller: okay. i admit that i am a tech weenie, and i'm already heavy in tech stocks. am i crazy to think that the potential of paypal and ebay that i could play that as a financial play? >> no, not crazy at all. i think that's exactly how you view it. >> buy, buy, buy! >> that's what i look at. my charitable trust, we think it is visa, it is mastercard, and it is paypal. and we don't really care about that the online auction market business. paypal is the thing. and that, ladies and gentlemen, the conclusion of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade. ♪ >> hey, i'm cramer! it's important to visualize what bernanke is doing, hence this ridiculous celebrity getup. and these grills represent the stages of frustration of the fed chief.
what he needs to do now is light a fire under this economy. initially he used some very deep lighter fluid. now this is water, right? didn't start the fire. uncle ben now realizes you can't start a fire out a spark. he is throwing gasoline on the fire. no, i'm not going to drink it. that encourages bad behavior. oh ho! taste it! >> and now jim cramer explains the pending fiscal cliff. >> the fiscal cliff, the fiscal cliff, the fiscal cliff is coming! >> this has been jim cramer explains the pending fiscal cliff. >> how do they have their hands when they go? now that fashion week is in full swing in new york city, i think this is the perfect time to circle back to some of the retailers that are really nailing it on the fashion side of the equation. ♪ michael kors. kors is almost too sexy for
back to school season is very much upon us. that means before we answer your tweets and e-mails, you got to do some homework. so let's get at it. here is what i am handing in a little late. we took some time off. it's august 15th. todd from north carolina asked about us stonemor partners, stom. there are only two things certain in this country, death
and taxes and stonemor is available in both. everything from burials, caskets, crypts, vaults. the unique thing about stonemor is the only death company structured as a mastered limited partnership. so its distributions have favored tax status. when you see a yield that high, it suggests the dividend might not be sustainable. and last year there were a couple of quarters where the company didn't make enough money to cover the payout. instead it covered from perpetual care trusts. so the earnings are inconsistent. there are concerns, and i'll throw in one more worry. stonemor's last two secondaries were priced above where the stock could trade. to me this feels like a stock i would like to avoid. if you want a death stock, stuart enterprises. enterprise product or let's do
kinder morgan, kinder morgan energy. i want you to stay away from stonemor. i was asked about tango, a leading player in the telco. the company came public in july of last year, helps businesses manage their telecommunications costs. it has the huge opportunity given last year telco spending was an astounding $425 billion, including my kids' texting bill. currently tango manages only 4% of the spending even as they're the largest player in the space. it seems like there could be a real growth story there, right? however, questions rising over real organic growth rate. after becoming public, the stock has fallen back to 14. the bear here is are concerned that tango's aggressive acquisition strategy might be masking a lower growth rate than people think, another battleground, people. too controversial. why own a battleground when there are so many other cleaner names out there with plenty of upside.
so don't tango with tango, at least until we get more clarity about what is happening here. all right. now let's answer some of your tweets and e-mails. let's take the first tweet. you go to @jimcramer on twitter. this is jason. he says should i stick out with dunkin', dnkn, or move to something like mcdonald's? i feel like it's been stuck in neutral and i'm missing the upswing. okay, mcdonald's we had a nice gain when everything else was hating it. the travel trust bought it. trying to scale out of that, dunkin', the quarter wasn't that great. so the stock is stuck in the mud. until we see a blowout quarter from dunkin', it's not going anywhere. we had a lot of blowouts and we didn't have hit this time. all right. another tweet. dave must know that hek@jimcramer is perhaps the most controversial portion of my twitter account.
probably three or four times a day someone says do you still like hek, as if i liked it at 9 and at 11 i stopped liking it. listen, people, it's a great spec on the oil and gas drilling in this country. if you have watched probably three episodes of this, you know this is the greatest story happening in america today, the oil and drilling story. not necessarily heckmann, but heckmann did that addition. they just added this one. i think it is terrific, all right? now, let's take a tweet from @brownsugarsoul. she writes you are the sexiest man on tv, boo-yah, heart. now i read that and i thought it was tweeted to the wrong person. how can you go and tweet to someone else and have it land in my column. the second, though, was to say i favored that tweet. and the third was a follow-up dinner -- no. it ended with the update. here is another tweet from@sgunderwood. friday boo-yah, jim. do you think unp and pacific
corp. will split? union pacific is a phenomenal company. we don't care if it splits. what you care about is the fundamentals. that's what matters. i like union pacific. stephanie link, the research director and i, we are so mad at ourselves that we didn't pull the trigger at union pacific, yet we still think if it went down three bucks we would buy it in a heart beat. here is jim. i bought 60 shares of kayak software corp. about a month ago at $32.90. should i sell, hold or buy at a lower price? i bought abbott labs. i'll be there serving bagels there on sunday. kayak is a great service. i don't want to own the stock. abbott is splitting into two. i want to own both pieces. "mad money" is back after the break. bob...
golden opportunity wasted. i'm talking about the kicking out of kraft and unite health to the dow jones industrial average this morning. i know that dow has been eclipsed by the standard & poor 500. i get that. i get there is more than $20 million in funds to attract the standard & poor. only a fraction of the dow jones industrial average.
plus, it's all about trumping or losing to the s&p 500. all that said, the dow is an american showcase. it represents the core u.s. economy. and to be a member is to stand on hallowed ground. the index can influence the regular investors' attraction to the market. what is the big to-do every time we cross or fall below a millennial number there is far too much of that ilk anyway. how much better it would have been to include an apple, which is obviously the most important stock in the world or a google which dominates the economy or amazon which is at the intersection of retail. i know because of the way the index is measured these stocks would swap the rest of the components. nevertheless, think about the current earnings and what a cliche calls the venerable index and knows they need changes. right now tech is dominated by intel, microsoft, hewlett-packard and google. three out of 30 components levered to a slowly dying form of technology that makes no sense to me and creates a painful irrelevant venice for the index. ibm can still be considered a decent portion of the economy, but cisco is the internet chit
in the dow, and that makes no sense. we are well beyond cisco these days. the inclusion of an apple or amazon or google would bring that index into the 21st century, as it should be. of course, if you think the dow already has too much tech, as antiquated as that tech, particularly hewlett-packard might be, why not choose wells fargo? it's one that controls 30% of the u.s. mortgage market. you want a stock that represents the drive in the economy or not. i know i'm playing a parlor game here, but chances like kraft don't come around very often. and when they do, the keepers of the index should rise and not fall to the occasion. stay with cramer. thor's couture miles card gets the most rewards of any small business credit card. your boa!
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